LGBTQ+ charities across the UK are facing a stark squeeze: new research found funding fell in real terms between 2023 and 2025, while more people sought help. The figures matter because local groups often provide vital support, yet much of the sector’s funding comes from a small pool of backers.

More people need support, but funding has slipped

The pressure is written in two numbers: funding for LGBTQ+ organisations fell by 8.6% in real terms between 2023 and 2025, while 72% of organisations surveyed reported more people seeking support. For charities already working with limited resources, that gap is more than an accounting concern. It can mean harder choices about what services they can keep running. [2], [3]

The LGBT+ Fund and Consortium’s research examined more than 770 LGBQ+ voluntary and community organisations. It identified £53.3 million in funding in 2025, equivalent to 5p of every £100 donated to charities across the UK, down from 6p two years earlier. [3], [5]

A small group of funders carries much of the weight

Funding is also concentrated: just 20 funders accounted for 88% of the identified support for the sector. That creates a clear vulnerability if a few donors change their priorities, particularly for organisations with little room to absorb a sudden shortfall. [3]

The figures make the case for a broader funding base, rather than relying on a handful of organisations to keep services afloat. LGBT+ Consortium describes the LGBT+ Fund as part of its work to support and develop LGBT+ organisations, while social enterprise research has explored whether social investment could help address the funding gap. [4], [6]

Grassroots groups are feeling the strain

Smaller organisations appear especially exposed. Six in ten of the smallest groups surveyed said they often used personal funds to pay for activities and deliver support. It’s a sobering picture: community work being kept going, in part, through the pockets of the people doing it. [3]

The report also raised concerns about staff and volunteer safety, wellbeing and burnout amid a more hostile climate for LGBTQ+ communities. Those pressures can reinforce one another, making it harder to recruit, retain and support the people services depend on. [2], [3]

What the funding gap means for charities

For someone seeking support, funding pressure can affect whether a local group has the capacity to respond, run activities or maintain services. The research documents rising demand and shrinking real-terms funding, but it doesn’t specify identical impacts across every organisation; each group’s needs and resources will differ. [3]

A practical step for prospective donors is to check what a charity says about its work and funding needs, then consider regular giving if that suits their budget. Foundations, meanwhile, can look at how accessible their funding is to smaller community organisations, as well as whether support is dependable enough for groups to plan ahead. [6], [7]

A resilient sector needs reliable backing

The report’s message is not that LGBTQ+ organisations have stopped delivering. It is that many are doing so under mounting pressure, with demand rising and money becoming scarcer in real terms. Admiration for their work is welcome, but it can’t replace the resources that make services possible. [2], [3]

The funding challenge also points to a wider question for charities and donors: how can support reach the groups closest to their communities, without leaving them dependent on a narrow circle of funders? Broader and more dependable backing could help organisations plan for the long term, rather than continually patching the gaps. [4], [6], [7]

Reliable support can help local organisations keep showing up for the people who need them.

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